Dimethyl (hydroxymethyl)phosphonate is widely used as a flame retardant in various materials, including textiles, plastics, and foams. Its ability to inhibit combustion makes it valuable in enhancing fire safety in consumer products and industrial applications. Additionally, it serves as a key intermediate in the synthesis of other phosphorus-containing compounds, which are utilized in water treatment, agriculture, and specialty chemicals. Its reactivity also makes it suitable for use in adhesives and coatings, where it contributes to improved durability and performance.